Payroll Tax Cut

GOP Wins On Keystone As Senate Agrees To Two Month Payroll Tax Cut Extension

Brian Beutler | December 16, 2011, 7:17PM

Sen. Harry Reid (D-NV) and Sen. Charles Schumer (D-NY)

Senate leaders have agreed to a plan that will prevent key policies, including a two percent payroll tax cut for employees, from lapsing on January 1, 2012, according to top aides. But the agreement will only extends the measures for two months, setting Democrats and Republicans up to relitigate this same fight fight early next year. And it comes at a political cost to Democrats who were forced to relent on a provision forcing President Obama to take a public position on the Keystone XL oil pipeline.

The $30 billion package will be paid for by increasing the fees lenders pay to mortgage giants Fannie Mae and Freddie Mac. It includes two month extensions of the existing two percent payroll tax; emergency unemployment benefits; and the "doc fix" which prevents Medicare physicians from experiencing a deep automatic pay cut.

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Government Shutdown

Dems Consider Dropping Demands As Republicans Risk A Shutdown

Brian Beutler | December 14, 2011, 4:59PM

Sen. Harry Reid (D-NV) and Sen. Charles Schumer (D-NY)

If it weren't for the filibuster, Democrats would have the GOP neatly over a barrel. But Republicans believe they've regained the upper hand -- and two developments suggest they're right.

Senate Democrats are now considering dropping their demand that a payroll tax holiday for workers be offset by imposing a small surtax on millionaires, according to Democratic aides -- resigning themselves to the fact that Republicans won't lift their filibuster if the surtax stands.

That'd leave a substantial funding hole in the bill, and it's unclear what would fill it. One option being considered is having mortgage giants Fannie Mae and Freddie Mac charge lenders higher fees -- a version of this measure is already in the House-passed payroll tax cut bill.

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Barney Frank

Barney Frank: Yes, I Once Helped My Domestic Partner Find Work At Fannie Mae

Benjy Sarlin | May 26, 2011, 4:57PM

Rep. Barney Frank (D-MA)

Rep. Barney Frank (D-MA) confirmed on Thursday that he helped his former domestic partner secure a job at Fannie Mae, an institution that Frank was entrusted with overseeing as a member of the House Financial Services Committee.

The story was first reported in a new book on the 2008 financial crisis by reporter Gretchen Morgensen, Reckless Endangerment. According to Morgensen, Frank talked up then-partner Herb Moses' qualifications to Fannie Mae executives in 1991 to help him score a job with the mortgage giant. Frank later took Fannie Mae's side against claims it had grown dangerously large repeatedly during his time on the committee, which he eventually took over as chairman in 2007.

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Financial Reform

Frank: Abolish Fannie Mae And Freddie Mac

Brian Beutler | August 17, 2010, 8:47PM

Rep. Barney Frank (D-MA)

House Financial Services Committee Chairman Barney Frank is calling for the abolition of Fannie Mae and Freddie Mac, the government-sponsored enterprises with a public mandate to boost home ownership, and which were taken into conservatorship during the 2008 financial crisis.

In an appearance on Fox Business Network tonight, Frank said they should be replaced with new programs to support affordable rental housing.

"I think they should be abolished," Frank said. "The only question is what do you put in their place. This is a situation where given the importance they had come to play in housing, you can't tear down the old jail until you build a new one. And that's a process that we've started."

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